IPI slips 0.4% on stronger manufacturing output


  • Economy
  • Saturday, 08 Aug 2020

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin (pic) said in a statement the decline in IPI in June from a year ago was due to the decrease in the index of mining (-17.1%) and electricity (-2.4%)

KUALA LUMPUR: Malaysia’s industrial production index (IPI) slipped by 0.4% in June, which was a positive surprise compared with a Bloomberg survey of a 10.4% decline, as the economic recovery was underpinned by the stronger manufacturing output.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin (pic) said in a statement the decline in IPI in June from a year ago was due to the decrease in the index of mining (-17.1%) and electricity (-2.4%).

Uzir said the manufacturing sector output increased by 4.7% after recording a decrease of 22.6% in May. “The major sub-sectors contributing to the growth in manufacturing sector in June were electrical and electronics products (13.2%); food, beverages and tobacco (10.5%) and transport equipment and other manufacturers (10.7%), ” he said.

As for the mining sector, output dropped 17.1% in June from a year ago due to the decrease in natural gas index (-13.5%) and crude oil and condensate index (-21.1%).

The June IPI surged from the previous month of May by 26.2% as the government allowed more industries to resume operations from May.

“Based on a month-on-month comparison, the increment of IPI in June was due to the increase in all indices; index of manufacturing (36.8%), index of mining (2.4%) and index of electricity (0.2%).

“The IPI for the second quarter 2020 recorded a significant decline of 17.9% as compared to the same period of the previous year.

“This decrease was due to the deterioration in all indices: mining index (-19.6%), manufacturing index (-18.1%) and electricity index (-10.8%), ” Uzir said.

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